Walmart Gets An "F" In Consumer Counterfeit Protection

Complaints are ignored, and counterfeit, infringing, and fraudulent products remain.

July 28, 2022, Los Angeles, CA – Walmart shoppers already face the daunting challenge of identifying counterfeit, fraudulent, and replica products, but now with an unusual twist -- Walmart is snubbing trademark owners and leaving counterfeit, infringing, and fraudulent products listed. The item you purchase may actually be fake, dangerous, or even deadly. Walmart is destroying U.S. companies and retailers and deceiving consumers while taking its transaction fee on each item sold.

Motivation may appear to be as simple as the transaction fee, but The Counterfeit Report found more appalling practices. For example, Walmart owns 15% of China's JD.com. JD.com in turn, owns online seller "Joybuy" and others that are ongoing sellers of counterfeit and infringing products. Joybuy has a 47% positive rating and repeated counterfeit sales, yet remains on Walmart. How well does Walmart vet its sellers?

Trademark-owners are receiving automated and often alarming responses to repeated infringement complaints and arbitrary removals of some items.

• "Based on the information provided, we have not removed the reported item(s) at this time. "
• "Please further explain your claim, clarify your desired outcome, and provide corroborating information, such as URLs, documents, etc."
• "Your message wasn't delivered because the recipient's email provider rejected it. "
• And, the nonsensical, "Pursuant to our agreement with Marketplace Sellers, we allow them the opportunity to resolve patent/trademark/trade dress claims directly with the seller."
  

  

Walmart is both a direct retailer of fake and fraudulent items and has opened its website, Walmart.com, to global third-party sellers who can list just about anything they want, including fakes, replicas, and fraudulent products. Counterfeit items appear right alongside authentic products, creating the illusion they are from Walmart or have Walmart's endorsement. Deceived consumers spend good money on bad products.

The Counterfeit Report found over 12,840 counterfeit and fraudulent items on Walmart's website and removed 3,747 fakes at the direction of the infringed brand owners. An average of six complaints were required for each listing removed. Hardly an acceptable or effective practice to protect brand owners and consumers. One counterfeit seller continues to list dozens of counterfeits after over 50 counterfeit listings were removed.

Consumers probably wouldn't suspect the counterfeit, fraudulent, or replica items below, found or purchased on Walmart.com.

• In simple terms, there is no authentic microSDHC® computer memory product in the 2GB and 64GB capacities shown, the SDHC standard, or any licensed manufacturer's authentic product line. The counterfeit microSDHC cards shown here were offered by Walmart as a direct retailer or third-party sellers on Walmart. SD-3C, LLC owns and licenses the microSD® and microSDHC® trademarks to authentic, conforming products. Consumers risk malware and losing their data and images when using counterfeit memory products.

• Composite Resources Combat Application Tourniquet® (C-A-T®) has been supplied to the U.S. Military, police, first responders and the public worldwide for the past decade. Counterfeit and replica versions of the patented C-A-T tourniquet have catastrophically failed during actual life-saving medical emergencies. Only eight of 323 listings reviewed on Walmart.com by The Counterfeit Report appeared to have authentic C-A-T products.

• Unscrupulous China salvagers re-label recycled unprotected 18650 Li-ion battery cells as "new" and sell them on Walmart at low prices with wild capacity claims. There is no legitimate individual 18650 battery with a capacity over 3800mAh. Yet, batteries with capacity claims up to 12,000mAh are offered despite legal notice to end the sales acknowledged by Walmart. The fraudulent batteries have an explosion and fire risk, and can be deadly. An authentic Samsung® 2500mAh battery is shown.

© The Counterfeit Report

Everyone knows selling counterfeits is illegal, yet through huge legal loopholes and virtually immune to prosecution, IP laws, and safety standards, Walmart continues to enable and facilitate criminal activity with impunity. Walmart profits from fraudulent sales, impacting consumer safety and public trust. The consequence is destroyed U.S. companies and retailers, lost U.S. jobs, and duped consumers. The value of counterfeit and pirated goods is forecast to grow to $4.5 trillion, costing 5.4 million net job losses by 2022.

View more Walmart fakes here.